Featured Tools: Toolkit for Public-Private Partnerships in Roads & Highways

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ImageThe Toolkit for Public-Private Partnerships in Roads and Highways is intended to be a key reference guide for public authorities in developing countries for the development of their PPP programs in the highways sector. However, much information on the subject is readily available, notably through the internet, and the Toolkit has not vocation nor pretends to be a unique reference on the subject. It does aim, however, to be a complete and coherent guide for the PPP development to assist public authorities in PPP policy development and project preparation as well as in the sourcing and monitoring of external expertise.

The Toolkit provides guidance for public sector authorities in the definition of strategy and policy for PPP, the definition of the characteristics of PPP projects and the stages for their preparation as regards:

  • the tasks (scope of work) entrusted to each party;
  • the level of autonomy left to the private actors and the way their performance is assessed;
  • the possibility and implications of including several road sections in a single contractual package;
  • the risk allocation principles and mechanisms;
  • the cost recovery system (general, specific taxes or direct road user charges);
  • the financial scheme based on a government budget, private financing or a combination of both.

The Toolkit presents concepts and methods for PPP which allow the required flexibility of approach for application in low- and middle-income countries, ranging from performance-based maintenance contracts to large-scale BOT highway concessions. Each public sector authority shall need to determine the degree to which such methods may be implemented, given the prevailing environment, and define the particular characteristics of its own PPP program.
 


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